21-22 November 2017

Vienna, Austria

Focus 11: Transitioning a workforce – getting your workforce transition approach right first timeAd Bourgonje, Deloitte

Deloitte Shared Services, GBS & BPO Conference

Short introduction

Ad Bourgonje

/2450

Since 2010

Netherlands

Organization transformation& talent

Mergers & Acquisitionsand Restructuring

Private sector(TMT & Manufacturing)

What will be covered today

Providing and sharing theoretical and practical insights on …

1… how to plan and implement workforce transitions using the

agile framework

2… how to engage with works

councils and trade unions

3… how to build and maintain

employee engagement

4… the impact of robotics on future

workforce transitions

Workforce transition defined

Objectives, challenges and approach

Workforce TransitionDefinition and Objectives

2Achieving ‘best in class’ future performance

4Providing timely and relevant information, communications and support to all relevant internal and external stakeholders

1 Minimized disruption on both Day to Day business AND transition

Definition

Workforce transition is the management of moving and guiding employees

• from current state through organizational changes

• into, around, and out of the new organization structure

Obje

ctives

3 Compliance with legal constraints and regulatory processes

Workforce TransitionKey Risks & Challenges (sample)

Being cognizant

and planning for

some of the

common workforce

transition

challenges should

help minimize the

impact to both

Business As Usual

and the overall

project timeline

Varying culture /

communi-cation

requirements

Operational readiness of a

(receiving) country

Stakeholder alignment (internal & external)

Reduction in Force (RIF)

Complex work council

consultations

Employee engagement &

retention

Specific jurisdiction

requirements /

regulations

Different (overlapping) waves of org

designimplementa-

tions

Staggered vs. big bang

announcement

Workforce Transition ApproachIt all starts with a clear strategy moving forward

BPO/SSC strategy

• Include Case for Change

Location & sourcingstrategy

Organizational Design

Process Design

Technology landscape

Change Management

Waves of implementation & evaluationDevelop Workforce Transition Approach

Example

Employee consultation bodies

How to engage

Employee consultationsTypes of Consultation bodies

European Works council (EWC)Bodies representing employees from different European countries in which a multinational company has operations

Country-Level Works Council (WC)Represents workers at a local level to complement national labor negotiations.

Trade UnionsLegally representative bodies.

Employee RepresentativesChosen by fellow employees or appointed by management to consult with company on workplace matters.

Individual ConsultationsConsultation on an individualized level

Consultationbody types

Country-LevelWorks Council (WC)

Trade Unions

EmployeeRepresentatives

Consultation Approach

Develop Consultation Plan

Develop(business)

Case for Change

Understand Consultation Requirements

Review Legal Framework

Develop Consultation

Documentation

Plan for Objections

Engage with works council(s)

Monitor feedback

Key Considerations

• Proactive management of risks

• Consultation plan pinned to key program milestones and key decisions

• A clearly defined consultation approach:

• supporting organization's effort to secure retention of top talent &

company knowledge, sustained morale and public opinion

• Ensuring compliance with labor and local benefits law

Expected Outcome

• Failure to comply with consultation requirements can cause delays and

cost exposure.

• Two-way consultation to ensure a clear flow of information, decision

making at a senior level and compliance with legal obligations

• Engage stakeholders and employees and understand and respond to

their individual requirements.

• Deliver a clear consultation strategy is key both before, during and after

transition.

• Create coherent package(s) of transition themes

Delivering a clear consultation strategy is key to successful transition

The work conference and dialogue approach could be considered to accelerate the consultation process

UpdateSubmit Consultation

request

ComprehensiveWorks Council

Work Conference

Draft Consultationadvice

Submit Consultationadvice

Traditional (sequential) approach Work Conference Approach Dialogue Approach

Submit Consultationrequest

Meetings/separate QA sessions per entity /

topic

Formal Works Council and consultation

meeting

Draft Consultationadvice

Submit Consultationadvice

Submit draft Consultation request

Meetings QA sessionsduring design

Final Works Council and consultation

meeting

Final ConsultationRequest

Submit FinalConsultation advice

Design transition(final) draft

Design transition(final) draft

Design transitionbefore/first draft

For complex global transitions you might consider to set up a Central Employee Consultation team

Setting Central Employee Consultation team up for success

Empowering and setting the CEC team in the driving mode to become a true enabler where:

• legal and/or contractual agreements are respected

• while the business (functions) is not hindered by the execution of these

• and there is close and clear alignment between LR and functions?

1. Vision & Strategy

A clear vision on work

council engagement

(international and local)

setting the tone and

relationship for the coming

years

2. Governance

A clear overview on roles

and responsibilities will drive

decisions and results

3. Processes

Clear processes will foresee

in proper prioritization and

unanticipated initiatives

4. Knowledge Building

Knowledge creates

understanding and

alignment so that parties

can collaborate

How to engage employees

First … Engage and support leadership to move their team members through the transition curve

Planning the transition journeyStep into the shoes of your key stakeholders and employees

Example

Impact of roboticson future workforce transitions

Robotics process automation – Marketplace observations

Interest in process automation is increasing and shifting strategic priorities

3.09

2.59

4.75

3.9

4.14

4.5

5.12

2.05

3.36

3.91

4.24

4.27

4.89

5.05

Developing a GBS model

Increasing geographic scope

Developing analytics capabilities

Increasing functional scope

Increasing functional process integration

Increasing level of automation

Focusing on continous improvement

Today In ten years

1 Increasing automation is the 2nd most important strategicpriority in Service Delivery

2 No.1 priority for Technology groups

2%

3%

10%

13%

15%

18%

30%

Social Media & Mobility

Document Retention & Archiving

Data Quality

ERP Standardization

Cloud Computing

Analytical Software

Process Automation

Source: 1. Deloitte Global Shared Services Survey, 2015, 2. The robots are coming”, Deloitte Financial Services White Paper (2015)

Almost half the roles in Back Office functions have the potential to be automated

3

0

0.2

0.4

0.6

0.8

1

Low Probability Medium Probability High Probability

Level of

education (

Bachelo

rs o

r m

ore

)

0.3 0.7 1.0

Business & Financial project management professional

Financial managers and directors

Purchasing managers and directors

Payroll managers

Financial administrator

Credit controller

Weighted probability of automation

Financial & Acc, technician

Finance Account Manager

Finance Manager

Robotics is gaining momentum, however …

Pockets of resistance to protect human rights are emerging too!

Bill Gates“The robot that takes your job should

pay taxes”

The Telegraph News“Jeremy Corbyn plans to 'tax robots'

because automation is a 'threat' to

workers”

The Korea Times“Korea takes first step to

introduce 'robot tax‘”

21-22 November 2017

Vienna, Austria

Deloitte Shared Services, GBS & BPO Conference

21-22 November 2017

Vienna, Austria